Dear Congress, Mr. Bush, and Mr. Paulson

I received yet another unilateral "Notice of Change in Terms and Right to Opt Out" from my credit card company yesterday.  As you can probably guess, it doesn't "lower" my rates.  So as of December, my rates increase, and the "default" rate on the credit card goes to Prime+23.99% (oh, don't worry this can't EVER EXCEED 29.99%!)  Now, of course, most of these card companies have "Universal Default" provisions, so if I'm even one day late on any bill (not just with my credit card company), my rate becomes the default rate.  And for people who do get in trouble with credit card or mortgage debt, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 which these same lenders lobbied for makes it harder for consumers to get out from under that debt (even though most personal bankruptcy when the bill was written was due to medical bills -- particularly for those without health insurance).

So here's what I propose:

In that, the recipients of the $700 billion bailout Troubled Asset Relief Program (TARP) economic rescue funds include banks and  financial institutions which have already defaulted,
 
In that, you (and indirectly I) as the lender can send a unilateral "Notice of Change in Terms and Right to Opt Out" letter to those who have already stepped up to the window,

Be it resolved that, these banks and financial institutions be declared in "Universal Default" and,

Be it further resolved that the interest on those loans be raised to 29.99% (did I mention that the highest rate is also the current rate?).

Now I know that the credit card companies (many of whom are the financial institutions which are stepping up to the trough here -- Bank of America, CitiBank, etc.) calculate rates compounded daily, but my calculator only does monthly compounding.  Even at monthly this is a $659 billion profit for us the taxpayers over the terms of a 5 year loan.  Sweet! that's a 19% annual return for the U.S. taxpayers. By the way, financial institutions, isn't compound interest great?

OR

Perhaps, you as our representatives could...

• require those institutions who take advantage of this program to suspend or end their provisions for "Universal Default" for the term of the loan or loan guarantees.
• roll back many of the anti-consumer portions of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 (have you read my post about NewSpeak?) with the advice of consumer advocates, bankruptcy judges, and bankruptcy attorneys.

I think it's pretty obvious that people as well as these financial institutions will be hurting in the next few years... Let's try to make it better, not worse for all of us.

Your loyal constituent,

Jim